Inflation, The Education Bubble And The Odds Of A Disastrous Retirementhttp://www.businessinsider.com/inflation-the-education-bubble-and-the-odds-of-a-disastrous-retirement-2011-4/comments
en-usWed, 31 Dec 1969 19:00:00 -0500Tue, 03 Mar 2015 15:44:01 -0500Doug Shorthttp://www.businessinsider.com/c/4dbfdf7acadcbb170e220000agewTue, 03 May 2011 06:56:58 -0400http://www.businessinsider.com/c/4dbfdf7acadcbb170e220000
student loan payment I would be doing significantly better.
<a href="http://www.pdfconverterformac.net" target="_blank">http://www.pdfconverterformac.net</a>http://www.businessinsider.com/c/4dae6ab849e2aec812000000David W.Wed, 20 Apr 2011 01:10:16 -0400http://www.businessinsider.com/c/4dae6ab849e2aec812000000
Education is a huge bubble which is going to explode. College treasurers have been concerned for a few years now about the 'tuition wall', which is the point when tuition becomes so high that parents cannot or will not pay it. Federal financial aid policies have created a tuition bubble by giving more financial aid to students who attend more expensive colleges. If federal higher education spending is cut back this year (very likely), the collapse may begin.
I graduated from a private liberal arts college in 1999, at which time the billed costs (tuition, fees, room and board) were $29,000, and 75% of students received financial aid. Now, the school costs $52k, and 97% of students there receive financial aid. If federal financial aid is reduced, students will drop out of these overpriced colleges, and many private and proprietary schools, including my alma mater, will likely go under.
Much like the housing collapse, many people will say that it can't happen. Oh, but it will! I think for the average American, the education collapse will be a good thing, as college prices will finally drop just as housing prices have dropped. Furthermore, I think it lead to more government funding of public colleges, and more government oversight of what goes on at colleges. Both reforms are very necessary.show more show lesshttp://www.businessinsider.com/c/4dad5d9c4bd7c8e04b2f0000NexusTue, 19 Apr 2011 06:02:04 -0400http://www.businessinsider.com/c/4dad5d9c4bd7c8e04b2f0000
It is ironic that you made some money the way you did...bully for you. But you have indirectly eliminated a future for other Americans through the off shoring of US manufacturing capacity to a major industrial competitor.http://www.businessinsider.com/c/4dad54184bd7c8873c4d0000HoboTue, 19 Apr 2011 05:21:28 -0400http://www.businessinsider.com/c/4dad54184bd7c8873c4d0000
So lucky that we free universities and student welfare over here.http://www.businessinsider.com/c/4dacfdb74bd7c877332d0000InsiderMon, 18 Apr 2011 23:12:55 -0400http://www.businessinsider.com/c/4dacfdb74bd7c877332d0000
The cash flow going into student loans will reduce what is available for buying houses.http://www.businessinsider.com/c/4dacd4e849e2ae6c0a0d0000WNMon, 18 Apr 2011 20:18:48 -0400http://www.businessinsider.com/c/4dacd4e849e2ae6c0a0d0000
I'm not quite as worried about the total amount. It isn't all 'crushing debt'.
I'm still floating well over $50k in student loan debt. Shouldn't have taken it all out, agreed, but here we are.
I also have the cash to pay it off. Hell, if I liquidated IRAs, etc, I could pay it off 7-8 times over.
But, I'm not doing so. My student loans are fixed at 4%. Over a 25 year term. I currently get to take the interest payment as a deduction... so effectively 3% cash. That I could put on a easy forbearance if I became unemployed. That would be written off if I died tomorrow (my wife wouldn't have to pay it from the estate). I can use the 'not paying it off' amount in my budget to max out 401k/IRA/HSA/etc.
I really don't see the slightest reason to pay it off a day early.http://www.businessinsider.com/c/4daca97749e2aeae22170000pongidae rexMon, 18 Apr 2011 17:13:27 -0400http://www.businessinsider.com/c/4daca97749e2aeae22170000
It is tragic and sad that those who have done the best economically in the last 30 years have done so by being direct agents or facilitators of the destruction of American manufacturing and the creation of an Asian middle class on the backs of destroyed American cities and the American unemployed.
So, good for you, D-boy. Weren't you the clever one. Fool.http://www.businessinsider.com/c/4daca6454bd7c82323130000D-boyMon, 18 Apr 2011 16:59:49 -0400http://www.businessinsider.com/c/4daca6454bd7c82323130000
I worked my way through state university loading trucks at night for UPS. I retired in my mid-40's a multi-millionaire after building factories in China for 10 years.
You didn't "put your self through" a expensive school, you dumped a mountain of debt on yourself - fool.http://www.businessinsider.com/c/4daca0fecadcbb4b0f100000Scott BrannonMon, 18 Apr 2011 16:37:18 -0400http://www.businessinsider.com/c/4daca0fecadcbb4b0f100000
Both my parents were blue collar workers. I put myself through an expensive private school. My student loans are out of control and it will be a very long time before I can pay them off. I'm almost 35 and I haven't even begun to save for retirement. There are a variety of reasons for that, including taking awhile to build my career in the non-profit industry. I know this career path will never make me rich, but I hope to die knowing I made a difference in the world with my time here. But if I didn't have a $400/mo student loan payment I would be doing significantly better. I don't regret my education because I love Wabash College (<a href="www.wabash.edu" target="_blank">www.wabash.edu</a>) and everything it stands for, but damn it my student loans are killing me!http://www.businessinsider.com/c/4dac916bccd1d5ee6c0a0000geoffMon, 18 Apr 2011 15:30:51 -0400http://www.businessinsider.com/c/4dac916bccd1d5ee6c0a0000
everything about reality is out of focus. I think one day soon, all we'll be able to want is today and our daily bread.http://www.businessinsider.com/c/4dac902c49e2ae27642a0000jasnoMon, 18 Apr 2011 15:25:32 -0400http://www.businessinsider.com/c/4dac902c49e2ae27642a0000
So... what will college look like in 15 years? I would imagine that a student could simply subscribe to an assortment of the best teachers and have them deliver their lectures (perhaps holographically - don't laugh!) for a modest fee. Why should one be limited to the professors at one physical place?
But then, where can the 18 year olds go to party? It's as if the university performs two functions: A coming of age and a place for learning skills etc. It seems like both could be done for pennies on the dollar though.